I can understand the wash trading aspect being a crime; it deceives investors which is akin to lying about the asset but I can't bring myself to accept 'selling unregistered securities' as a crime... Especially given that registering a security can cost $60K+ - That's simply not a fee which most small projects can afford; it's effectively locking entrepreneurs out of opportunities in a way which is against fundamental free market principles. Surely it's unconstitutional.
If the seller is honest about the asset which the investor is buying, I don't see how the government should have anything to do with that. If the investor is not capable of understanding an accurate and concise description of the asset, then that's the investor's fault; the government should not protect people from their own negligence or ignorance - The system relies on keeping capital in the hands of intelligent, knowledgeable people; this is the foundation of a functioning system.
If the seller is honest about the asset which the investor is buying, I don't see how the government should have anything to do with that. If the investor is not capable of understanding an accurate and concise description of the asset, then that's the investor's fault; the government should not protect people from their own negligence or ignorance - The system relies on keeping capital in the hands of intelligent, knowledgeable people; this is the foundation of a functioning system.